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Lotus Pharmaceuticals Announces Second Quarter 2008 Results
Date:8/18/2008

the project is an estimated RMB 50 million (approximately $7.1 million).

2008 Outlook

"We recently obtained the patent and exclusive production rights to a new asthma drug, Laevo-Bambutero, which we plan to launch in 2012 after we receive approval from the SFDA. We currently have fourteen drugs for which we are seeking SFDA approval, and plans for manufacturing a number of new pharmaceutical products," said Dr. Liu. "In 2008, we expect strong revenue growth to be led by our distribution of pharmaceutical products manufactured by third-parties and our best selling branded products. For the full year 2008, because of our growing distribution network, we remain confident that we will meet our 'make good' net income target of $13.1 million."

"As part of our longer term growth strategy, we began the process of acquiring land use rights on which to construct a product development and manufacturing facility that will allow us produce a wide range of new pharmaceutical products. We hope to have the facility completed by the end of 2010. However, we may adjust the time line depending on our availability of working capital and external funds. We obtained the land use rights at a favorable price and may be able to monetize a portion of them in the future."

Conference Call

Lotus' management will host a conference call at 10:00 a.m. Eastern Time on Monday, August 18, 2008 to discuss results for the quarter ended June 30, 2008. To participate in this live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 888- 481-7939. International callers should call 617-847-8707. The Conference Pass Code is 306 650 22.

Replay of the conference call will be available from 12 p.m. Eastern Time on Monday, August 18 for fourteen days. To access the replay, call 888-286- 8010. International callers should call 617-801-6888. The Conference Pass Code is 939 152 01.

Use of Non-GAAP Financi
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SOURCE Lotus Pharmaceuticals, Inc.
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